Redrow hails record order book but warns sales could slacken off

Housebuilder Redrow has hailed a record order book for new homes but cautioned that it expects sales rates to cool to more typical rates next year.

The London-listed group told investors on Wednesday that it has built up an order book of £1.43 billion after benefiting from the pandemic housing boom.

The firm also revealed that revenues jumped by 45% to £1.94 million for the year to June 27, against the same period last year, which was depressed after the pandemic thwarted activity.

Nevertheless, sales were still 8% below pre-pandemic levels from 2019.

The group highlighted that its recent sales rate had moderated since the phasing out of the Government’s stamp duty.

Redrow said its sales rate for the first 11 weeks of the current financial year averaged at 0.66 home sales per site, compared with 0.84 from the previous year.

John Tutte, chairman of Redrow, said: “The buoyant housing market has moderated in recent months and we anticipate sales rates will return to historically average rates over the course of the current financial year.

“It is on this basis we have planned for the future and we are confident our timely investment in land, combined with strong demand for our Heritage homes, will support our longer-term growth aspirations.”

The firm also said that pre-tax profit more than doubled to £314 million, surpassing analyst expectations.

Mr Tutte added: “Against a background of much uncertainty at the start of the financial year, I am delighted to be able to report the group delivered an excellent performance in the year to the end of June 2021 with better-than-expected results.”

Shares in the company were 0.5% higher at 703.8p after early trading.